Research shake-up risks isolating the UK

The FCA’s plan to overhaul the use of trading commissions has sparked calls for international regulators to follow suit

By

Michelle Price

March 10, 2014March 10, 2014 Updated: March 11, 2014 12:06 p.m. GMT

Pressure is growing on international regulators to review the way asset managers pay for investment research following the UK Financial Conduct Authority’s move to overhaul the country’s research industry.

The FCA's November announcement that it would clamp down on the practice of using client commissions to pay for research has sparked fears that the UK asset management industry could be put at a global disadvantage. Many asset managers as well as the FCA are pushing for greater regulatory co-ordination in a bid to level the...